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High cotton prices squeeze textile mill profits
Dec '09
Cotton prices in the Chinese domestic markets have continued to rise since the onset of the new cotton season. The highest price in November soared to 15,740 Yuan per ton, up more than 1,738 Yuan per ton from the end of October.

Experts point out that prices of clothing and other end-products are subject to those prevailing in global markets, so price increase of raw materials is difficult to transfer, which is bound to squeeze corporate profit margins.

Sources reveal that the cotton based textile sector has plunged into a loss making zone and some textile units have even started cutting production in a bid to minimise losses.

Fibre2fashion News Desk

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